WATCHDOGS are investigating how a convicted fraudster got access to a charity’s bank details on day release from prison.

We told how Tony Prudhoe, the mastermind of a multi-million pound bank sting, gained work at the County Durham Furniture Help Scheme (CDFSH).

The 62-year-old was jailed for seven years in 2007, having been tracked down by police to Jordan

And while serving time at HMP Kirklevington, Teesside, he won a work placement at CDFHS and ended up working in its main office.

While there, he engineered it for a pal in the Middle East to transfer cash to the charity’s coffers, which he said was to be given to him as a salary.

After prison staff learned about it, they cancelled the placement and told CDFHS no further inmates would be sent there.

Months later, Prudhoe lodged papers with Darlington County Court, saying he planned to sue the charity for the money that was sent over.

That raised questions about how he was able to gain access to sensitive financial data during his time with CDFHS.

Now, the Charity Commission has written to managing director Chris Palmer, demanding answers over the issue.

It comes after Mr Palmer and his colleagues lodged their official defence statement.

It is in response to Prudhoe’s claim he is owed more than £1,200.

Mr Palmer said: “As soon as he started asking for money, I told the prison and they said to keep them informed of everything that happened, which I did.

“Then we got the letter from the court and we didn’t know what to do.”

Prudhoe admitted six counts of fraudulent trading in March 2007, when a court heard he lived a life of luxury on the proceeds of his fraud.

The scam involved his firms amassing millions from banks by claiming advances from them for work which had never been done.

Prudhoe, formerly of Bridge House, Corbridge, Northumberland, got his job with CDFHS, working five-hour shifts, before being returned to his cell.

After a short period of time working there, he started to claim he was entitled to be paid for his efforts and papers seen by the Chronicle show he emailed a contact in the Middle East and sent the charity’s bank details to him, for the money to be transferred back.

The Prison Service has refused to confirm whether Prudhoe was ever given permission to do paid work but said after a probe, it stopped its work placement arrangement with CDFHS.

The Charity Commission confirmed it has requested information from CDFHS and would not comment further until that has been received.